Measure demand sensitivity from price and quantity movements. Use midpoint or standard percentage calculations easily. Review exports, examples, formulas, and decision-ready interpretation below today.
This calculator helps analysts measure how strongly quantity demanded responds to a price change. It supports both the standard percentage method and the midpoint method, so you can compare sensitivity under different reporting rules.
It also summarizes revenue movement, labels the result as elastic, inelastic, or unitary, and plots the change between two price-quantity points. That makes it useful for pricing reviews, dashboard checks, and quick business analysis.
| Method | Original Quantity | New Quantity | Original Price | New Price | PED | Classification |
|---|---|---|---|---|---|---|
| Midpoint | 100 | 120 | 10 | 9 | -1.7273 | Elastic |
| Midpoint | 150 | 140 | 20 | 21 | -1.4138 | Elastic |
| Standard | 80 | 76 | 15 | 16 | -0.7500 | Inelastic |
| Standard | 300 | 330 | 12 | 11 | -1.2000 | Elastic |
Standard formula: Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Standard percentage change in quantity: ((Q2 - Q1) / Q1) × 100
Standard percentage change in price: ((P2 - P1) / P1) × 100
Midpoint formula: [((Q2 - Q1) / ((Q1 + Q2) / 2)) × 100] / [((P2 - P1) / ((P1 + P2) / 2)) × 100]
Interpretation rule: If absolute PED is greater than 1, demand is elastic. If it is less than 1, demand is inelastic. If it equals 1, demand is unitary elastic.
It measures how much quantity demanded changes when price changes. The coefficient helps analysts estimate customer sensitivity and predict sales response under different pricing conditions.
Demand usually moves opposite to price. When price rises, quantity demanded often falls. That inverse relationship makes the signed elasticity coefficient negative in ordinary market behavior.
The standard method uses the starting value as the base. The midpoint method uses the average of old and new values, which reduces directional bias between two observations.
An elastic result means quantity demanded reacts more than proportionally to the price change. In absolute terms, the coefficient is greater than one.
An inelastic result means demand reacts less than proportionally to the price change. In absolute terms, the coefficient is below one.
The signed result shows direction, while the absolute value supports classification. Businesses commonly use the absolute value to label demand as elastic, inelastic, or unitary.
Yes. It compares initial revenue with new revenue using price multiplied by quantity. That helps you quickly see whether the observed movement raised or reduced total revenue.
Use it when you want a balanced comparison between two points. It is especially helpful when you need a more stable estimate for reporting or teaching.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.